Coop v. Cajigas

Coop v. Cajigas, BAP No. PR 13-040 (B.A.P. 1st Cir. July 30, 2014)
The Bankruptcy Appellate Panel (the "BAP") VACATED the order of the Bankruptcy Court for the District of Puerto Rico (the "Bankruptcy Court") and REMANDED to the Bankruptcy Court. As section 523(a)(2)(A) excepts from its scope statements relating to the debtor's financial condition, section 523(a)(2)(A) does not apply to misrepresentations on an employment verification submitted with the Debtors' loan application and tax returns. As such, because Candel sought summary judgment only under section 523(a)(2)(A), the BAP vacated and remanded to the Bankruptcy Court.
Procedural context:
Noel Hiram Crespo Cajigas and Marianne Manzanet Girona (the "Debtors") appeal from an order granting summary judgment in favor of a creditor, Candel Coop ("Candel"), a Puerto Rican credit union.
In September 2010, the Debtors filed a voluntary petition under chapter 7. Candel subsequently filed a complaint seeking a determination that the Debtor's obligation to Candel was nondischargable under 523(a)(2)(A) and (B) based on allegations that the Debtors misrepresented Girona's employment status and income on their loan application. Eventually, Candel filed a motion for summary judgment only on the basis of section 523(a)(2)(A). The Bankruptcy court granted the motion for summary judgment in favor of Candel as the Debtors failed to oppose it.
Hillman, Hoffman, and Finkle

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